Step 1 – Strategic market analysis
In this first step, address the following questions to gain a good overview of current market:
§ Who are the current clients, buyers and users of the company’s current products/services? (consumers, consumer segment, business customers, etc.)
§ What is the market penetration within the various market segments?
§ What is the size of the overall market for similar products (and connected services)?
§ Who are key competitors (current/potential competitors in the near future)?
§ What information is available on their market share, growth potential, etc.?
Step 2 – Market SWOT
This step should enable to gain a good understanding of the unique selling points, the barriers to entry and weaknesses of the company.
The SWOT analysis should also address from the customer perspective the following questions:
§ In which respect has your offer, compared to that of your competitors, a better and in which respect an inferior performance to customers (e.g., price, quality, image, etc.)?
§ What is your competitive advantage in terms of client satisfaction (i.e., About what are your customers more satisfied, and in what respect are they less satisfied than your competitors' customers)?
§ Which market segments does your company attain, and which segments do competitors attain? What is the market penetration of your company and of the competitors in the whole market and in the various market segments?
§ Is your company able to provide flexible, tailor-made solutions to the customer?
§ Can competitors easily imitate your offer?